A judge ruled in June that Anthropic didn’t break the law by training its chatbot on copyrighted books, but it was still facing trial over how it acquired the books.

Called Bartz v. Anthropic, the case deals with Anthropic's use of books as training material for its large language models.

Anthropic faced the prospect of more than $1 trillion in damages, a sum that could have threatened the company’s survival if the case went to trial.

A judge ruled in June that Anthropic didn’t break the law by training its chatbot on copyrighted books, but it was still facing trial over how it acquired the books.

The amount of the settlement, which has not yet been disclosed, could set the bar for how authors are compensated in licensing deals